19 September 2008
NHS trusts in Wales have overspent again, according to figures from the Wales Audit Office published this week.
The auditor general's report for 2007/08 found that NHS trusts in the devolved administration were in deficit by £2.7m, with one trust, Ceredigion and Mid Wales, failing in its statutory duty to break even.
Local health boards were saved from a projected overspend by a last-minute allocation of £24m at the end of the financial year. Some will be required to repay the money from their 2008/09 budgets.
The figures represent an improvement on previous years, with a deficit of £14m in 2006/07 and £26m in 2005/06.
This year's audit includes, for the first time, an examination of financial management arrangements at Welsh NHS bodies using an assessment tool developed by CIPFA.
The report concludes that almost all NHS bodies need to improve their medium-term financial planning. It recommends that finance directors should work with board members to improve their financial skills. Auditor general for Wales Jeremy Colman said the financial position of the NHS in Wales was much improved but there were still areas for concern.
PFsep2008
